Kapa Gold Announces Closing of First Tranche of Private Placement

Kapa Gold Inc. closed the first tranche of a non-brokered private placement on July 3, 2026. The company issued 12,894,999 units at $0.15 per unit, raising approximately CAD$1.93 million. Each unit includes one transferable common share purchase warrant exercisable at $0.25 for 24 months. Warrants feature an acceleration clause if the TSXV closing price reaches $0.30 for 20 consecutive days. Proceeds are designated for the next drill program at the Blackhawk Gold property and general working capital. Finder’s fees of CAD$39,855 and 265,700 finder warrants were paid to Canaccord Genuity, Haywood Securities, Research Capital, and Ventum Financial. All securities carry a statutory hold period of 4 months plus one day. A second tranche is expected to close on or before July 17, 2026.

KAPA Gold Inc. (KAPA) closed the first tranche of its offering, a routine follow-up to announcements made on May 28 and May 29 when the offering was initially proposed at $2 million and subsequently upsized to $3 million. The financing is dilutive, adding approximately 12.9 million shares and warrants to the capital structure, but it is priced at the current market level of $0.15, indicating fair market value rather than a distressed discount.

The capital raise extends the company's cash runway by approximately 12 to 18 months, a move critical given the explicit going concern warning and an accumulated deficit of over $10.29 million. The news does not alter the fundamental risk profile; it merely provides temporary liquidity to execute the planned Phase 1 drilling program of approximately 8,800 meters. The market impact is expected to be neutral to slightly negative due to the dilution and the persistent underlying going concern status.

Kapa Gold Inc. is a junior exploration company focused on gold and base metals. Its flagship asset is the Blackhawk Gold Property, located in Lucerne Valley, California, which is 100% owned by the company. Management has recommended a Phase 1 drilling program of approximately 8,800 meters based on recent technical reviews. An option agreement with MFD Investment Holdings allows MFD to earn a 10% interest in the property by committing US$1.0 million in expenditures by August 2027, which must include at least 600 meters of drilling.